Is serious spike. Oil is already on the rise. Im not going to say i trusted, we have been to the stands before. Theres a lot more news we have to cover. Another snow day for federal government workers in washington, d. C. Offices will be closed while the city digs out from the blizzard. Air travel is slowly getting back to normal. Fewer flights were canceled yesterday. Theident obama has banned use of solitary confinement for juveniles and federal prisons. The Washington Post says the president says solitary confinement can lead to devastating imitating compensators devastating consequences. In denmark, the parliament is expected to let police these valuables worth more than 5,000 from refugees seeking asylum. 1500 from refugees seeking asylum. Danish citizens must sell assets before getting welfare. Our 2400 journalists and more than 150 news markets around the world, im vonnie quinn. Its now with matt miller. Aig, breaking news from they are going to ipo a 20 guarantorhe mortgage united guaranty is a first up towards completing the exit of that business area aig also announced 3. 6 billion in new costs to fill a reserve shortfall. Shares are up 1. 7 in the premarket. This will prove this will probably give us some role of trading. We watched the shares for you. Stephanie one of the reasons we are seeing this is a response to carl icahn. ,he head of the aig meeting could one say that aig is disrupting itself . You have carl with his foot basically on the ceos throat. What have you done for me lately . Not enough. This has to be assumed in response to that. Will the market feel like its enough . Hancock, the ceo, has to boost returns. Hes trying to save his job. Activist investing has gotten a lot more serious. He is being attention, the stock is up. We have a lot of earnings today. Lets go through a couple of the Big Companies out with earnings. Out with gamble came an estimate beating . 98. The ng is the beat, we havent had a lot of trading the premarket. , its the year to date been a tough market. Thats not bad for 2016. Down 3 . Procter gamble. Let me go through the rest of the earnings. Dupont came out with its biggest loss since 2008. If you adjust for a number of costs, it actually had a profit per share of the seven cents. That beats the street estimate of 26 . 27 . Not a lot of trading in the premarket. You can see your to date, it had a much more difficult time than Procter Gamble and a pot down 20 after pulling off the biggest merger of all time in the chemicals industry. Johnson johnson meeting with q4 earnings of 1. 44. We were looking for 1. 42. Johnson johnson shares down 6 year to date. Still waiting for premarket trade there. Finally, coach earnings are out this morning. Secondquarter eps, . 61. Sales were 1. 27 . [no audio] matt thats on the s p right now. There was a violent snap in crude morning, down 3 . It turned around and recovered, and i you see it up 1 at 30 and . 63 a barrel. 30. 63 a barrel. Saudi arabia coming to an agreement possibly for a cut there. It really drives the oil market. Screen ofw you a full all the asian indexes im looking at. We have massive moves. Csi 300, 6 the down, the shenzhen at 7 . Huge drops in asia overnight, which led to real volatility around the globe. Adding oil, its anybodys guess as to what happens. Stephanie another bit of news to break in the corporate world. It speaks to what you were mentioning with aig. Peter hancock, the ceo, taking action at a time when activist investors are on their heels. Lockheed martin saying they are separating, theyre going to be combining their i. T. And tech Service Units with lighters. Leidos. Ther seeing more ceos take a deep dive and try and improve operations and bottom line. This is another way we are seeing that. Its still early to tell. Lockheed shares are trading down slightly off of this news. David that just came across the wire, this is a reverse morris trust, a specific way of selling something without having to pay the taxes on it. Stockolders will get some at a chunk of cash, a 1. 5 billion. It sounds like lucky did not want to be in the i. T. Business anymore. It seems like lockheed did not want to be in the i. T. Business anymore. Stephanie this is what ceos should be doing. Tightening up their game, looking at what they have in the coffers and thinking how can i tighten the screws as much as possible. The last thing they want is a carl icahn or David Einhorn. David a core business they can make money off of. Stephanie in the premarket, slightly down. Matt id love to hear more about that trust, david, and what that means. Lockheed shareholders will get the majority of this business. As they spin off that tech business, that use the word combined. That is corporate speak for buy. Theyre basically going to buy this business. David if lockheed took it all in pat in cash, they have to pay taxes. This way, that doesnt happen. Should mention, we were opining on the motivations of Peter Hancock. We dont have to do that. Ceoy, Peter Hancock, aig will be sitting down with our own betty liu at 10 00 a. M. A big day for aig, the right day tasks are hancock what exactly is doing. Were going to take you overseas to china with the shanghai composite plunge. 615 on concert 6. 5 on concerns that capital could accelerate. En zone Robin Ganguly bloombergs own Robin Ganguly joins us. Its far more retail focus that we see here in the states. Robin what can i say, stephanie . We are heading into the year of the monkey. Ware monkeying around at the beginning. 6. 5 ,ore serious note, investors are really concerned about stability in the market. Their ability to protect policy. You cant to drive overnight 70 ,wing costs to 68 , sell on shore banks, restrict their onshore you on business and expect people to have confidence in the free market. Thats the main problem. Theres a lack of confidence in anything, any chinese assets. David in the Bloomberg News report, it said there was 1 trillionpital that flowed out of china. Are these new numbers . Robin yes. This is our colleagues at bloomberg intelligence. They have come up with this estimate of 1 trillion, thats about six or seven times the amount of capital that left china in 2014. This illustrates the huge turnaround. Chinese assets are finally beginning to trade like emerging market assets. Stable, they were a haven in asia, a haven in emerging markets. Now all this turmoil, since the august 11 devaluation saying they will allow Market Forces a greater say, going back on the words of the speak. It is creating a lot of turmoil, a lack of confidence. That is why so much of capital is flowing out of china. David i want to illustrate that with a chart from the bloomberg right now. If you take a look. In blue, i have the u. N. The yuan. This is the devaluation robin was talking about in august. In white, we have capital flows in china. Matt as a gets lower, money is coming out under the zero line. Its getting to be dramatic. We were talking this morning about the fact that a lot of the wealthy chinese are buying property around the world. That is boosting prices in real estate. We focus on that later. Do you see capital outflows . Do you see evidence of that we were Walking Around . Robin definitely. The problem is, when the imf on november 30 said the chinese in 2016, that insinuates that will be greater fraying of capital controls. Up of capital controls. We have the estimate of 1 trillion flowing into chinese assets over five years. There is also this pentup desire for investors in china to take their money overseas. You have to really be careful about how much money is going to flow overseas. See capital controls, you 1 trillion flow out an estimated 1 trillion in 2015. Controls are used further, it could be the year of the monkey. David that is bloombergs robin kong. Y in hong today is the first fomc meeting since the fed raise rates just in december. Will we hear a tinge of regret . Thats coming up next on bloomberg go. Vonnie welcome back to bloomberg go. President obama wants to make it easier for businesses to offer retirement plans to workers. Firms toallow small join together to form retirement plans, which would reduce the mystery of cost and compliance issues. Admin straight of cost and come administrative costs and compliance issues. Disney and ing for workers came on temporary visas. Hcl and cognizant say they comply with u. S. Laws. Billionaire john paulson is using his personal fortune to back Stock Investment losses. Hes had to cut assets by more than half. Is using his own investments as additional collateral for the firms credit line from hsbc. Thats a Bloomberg Business flash. David thanks, vonnie. I think its actually stephanie. Stephanie i appreciate that. With barryn off ritholtz next to me. Up. S what, giddy the fomc is meeting for the First Time Since they raise rates in december. It in the turmoil weve seen in the last few weeks, we are obviously asking the question did they move too soon . Take a look at what they said in davos. Made a mistake, growth is disappointed, inflation will go lower than higher. Now you have turmoil. Certainly, they cannot do four hikes, barges off the table, made by june. Maybe by june. Theyre going to do something, but there is something from the fed means we dont hike in march. Maybe in june. Tracy stephanie is noteworthy as those comments are, only he has assured opened with two buttons, while the rest of us were completely buttoned up. As i mentioned, Barry Ritholtz is here with our friend brendan greeley, who we havent seen in a while. Brendan you were busy in nightclubs at davos. Stephanie i was working. And carl riccadonna. Lets throw it in the middle of the pot. Janet yellen. Whats going to happen . Did she raised too soon . I dont think she raised too soon. The fed has a dual mandate, it has nothing to do with the stability of overseas markets. We have been an emergency footing as zero four seven, almost eight years. All the fed is looking to do is get off the emergency footing and do so in a way that is least disruptive as possible. Are they going to raise now, no. Are there more races coming this year . Probably. Is it going to be three or four . No one knows. Carl its not going to be three or four. The fed doesnt want to show buyers remorse or show signs of regret. They want to telegraph this was the right decision, they can hence of Downside Risks to the economy, but theres really no benefit for them to dial back those four rate hikes they were penciling and as of december. If you look at the futures, the next rate increase coming possibly as late as september. They wait until that Market Sentiment shifts back, and then they can say we will do less. And that it will be a surprise to the market, and that has some cachet. David janet yellen says she is data dependent. She doesnt say she is only partially due to dependent. Part of whats going on is the strength of the dollar and foreign markets. Of the data is whats going on with inflation. Stephanie did you just talk about yourself in the third person . Brendan the brendan. Then you will know that i have arrived. The brendan wants to take a look at inflation data. Fed has developed a case of the howevers. They say the things we have come to expect. At the downturn in inflation, its obviously consequence of lower oil prices. However, we been seeing more and more howevers, recently. They are worried that topline Inflation Expectations by the general population, by business owners, have lost their anger. We are seeing a lot more people talking about inflation anchors. William dudley gave a speech in january, he said when you look at the university of Michigan Consumer sentiment survey, is lower than it has ever been. Let lower expectations of topline inflation. When expectations are lower, that wreaks havoc in your down the line. True with Market Sentiment. The st. Louis fed pointing out Market Sentiment is very low. Lower than it has been historically. Haveeal question is, Inflation Expectations slipped their anchor . Barry the fed has been lowering expectations as measured by the university of michigan. Stephanie dont talk university of michigan. Core cpi and december, we finally end of the year above the feds inflation target. We were 2. 1 . This was a hollow victory for the fed. This is all almost predominantly due to rent pressures. The rent is two. High. Darn high. Stephanie we get to go to commercial. Brendan greeley, carl riccadonna, thank you. We make it very haircut during the break. Y awe may get barr haircut. Stick around, you are watching bloomberg go. We are hoping for grain markets with oil heading in the right direction. Stephanie youre watching bloomberg go. Johnson johnson Fourth Quarter estimates boosted by drug blockbusters. With us now is dominic caruso, chief financial officer. 3000 job cuts in the medical Device Division recently. I was not going to help you, Going Forward how is that going to help you Going Forward . Dominic you are referring to the restructuring we Just Announced. We think that restructuring is the right step to take to position the business. We are strengthening our go to market models and free up some resources that can be reinvested in the business to drive growth. We think its the right move for this business. David please take us through the relative growth in the three main areas. Because youve had some disparate growth levels there. Dominic sure. I couple of things. We have some acquisitions in investors that cloud the picture. To give you a perspective on it, our pharmaceutical business overall is about 11 growth. Thats very strong. We did divest a product line early in the year which reduces that growth rate a little bit. About 11 in pharma. In the consumer business again, excluding acquisition to investors, about 4. 2 growth. Nice growth. Medical device business, lower growth, about two point 5 , excluding acquisitions and investors. Stephanie in terms of specific drugs, what are you betting on . Eli lilly and pfizer are making great strides. A strong fromve simple business, a big pipeline. We Just Announced we plan to file 10 new products by 2019, billionwhich have a 1 potential. The first of those that we just got approval for recently is an important product for multiple myeloma, which we think will be a big success. Stephanie given how global your business is, whats the impact of the strong dollar . The 2015, its been a negative impact on sales around 7. 5 . We are projecting based on current rates that impact would be as low as 1. 5 going into 2016. David you have the event of a strong Balance Sheet. What are you going to do with that cash . I know you have a stock buyback program, but thats not going to consume it all. You have a strong Balance Sheet, and are always looking for ways to deploy capital in a way that creates value for shareholders. We pay a healthy dividend, always looking for acquisitions to bolster growth. We will do that at the right price on the right time. We are patient. In the meantime, we return cash to shareholders like you just our 10 billion Share Buyback we are currently executing on. Stephanie what is your take on china . How bad is the economic slowdown . Have seen a slowdown in china. Review china as a longterm play. Demographicsh the there, that plays well with vehemence need for health care, that plays well for a business. Perspective, china represents currently only about 5 of our sales. So any immediate slowdown or shortterm Economic Conditions will not have a Significant Impact on business. David dominic caruso, Johnson Johnson ceo. Thank you for joining us. More on the fed in the markets coming up next on bloomberg go. Stephanie we have to give a shout out for new jersey. The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Stephanie david welcome back to bloomberg go. Futures are up slightly, and we thejoined once again by economists Barry Ritholtz. Lets get started with vonnie quinn. Vonnie thank you. A new poll shows donald trump dominating the field of republican president ial candidates. The new cnn or see national poll, 21 41 back to trump. Is a 20 , alluz of the candidates are single digits. In texas, a abortion activist has been indicted by a grand jury. He is charged with tampering with the government records. The videos accused planned parenthood of illegally selling fetal body parts. Plan parenthood was cleared of wrongdoing. It may be a little while before things are back to normal on the east coast. 48 hours after the blizzard, travel is still a mess. Airlines delayed or canceled more than 2500 flights. Many schools are still closed. In washington, d. C. , federal government officers remain shut by morebal news powered than 150 news bureaus around the world. Im vonnie quinn. Breaking news with matt miller. Matt sprint and 3m right now. Let me give you sprint. The company sees fullyear adjusted at 9. 5 to 10 billion. Total net additions in the quarter were hundred 91,000. Was 1. 9 billion. The question is what going what is sprint going to do about its workforce . You want to watch sprint for job cuts. The company has already said it plans to cut 2500 jobs as part of a plan to cut 2. 5 billion. If you type in sprint or any company on your bloomberg gominal and then type in oss , you can see a depressing chart of when the company has cut jobs as far as the run of its share price as well. I got that up on my terminal if you want to take a look at that. Meanwhil